Royal London Sustainable Diversified Trust Class C Inc

Mixed Asset 41-60% Equity

Rated Fund 2017-19. Invests to benefit society

Royal London Sustainable Diversified fund aims to provide capital growth from a diverse range of asset classes – equities, fixed income securities, property related investments and cash – with a focus on investments that make a positive contribution to society.

Mike Fox, head of sustainable investments at Royal London Asset Management, has managed the fund since 2014. He invests in companies with products or services that benefit his core themes of the environment, human welfare and sustainability.

His focus is on companies leading their industries in environmental, social and governance (ESG) performance, as assessed by Royal London’s analysts. Fox and his team aim to integrate the consideration of ESG issues alongside financial analysis throughout the investment process.

Every holding in the fund has to meet key criteria and the team actively engages with the companies it invests in to champion best practice and challenging them on ESG issues. On the other side of the coin, the exclusion policy is to focus on avoiding companies believed to expose investors to unacceptable financial risk resulting from poor management of ESG considerations.

Fox’s investment approach is characterised by several features, including a focus on long-term themes and trends, such as infrastructure or changing demographics. When selecting shares, he takes a valuation-driven approach aimed at identifying mispriced opportunities with careful analysis of company-specific factors.

Fox aims for low turnover in the portfolio with companies typically held for three to five years. The lion’s share of assets, at more than 60%, is invested in the UK, but the fund also had 20% in the US and smaller allocations across continental Europe at the end of 2018.

Narrative and ratings content all as of 01 January 2019.

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Name
Royal London Sustainable Diversified Trust Class C Inc
Manager
RLUM Limited
Type
Unit Trust
ISIN
GB00B844WJ68
Sector
Mixed Investment 20-60% Shares
Launched
26/11/2012
OCF
0.77 %
Risk Rating
5
3 Year Sharpe
1.34
3 Year Alpha
2.86
Yield
1.5 %
Benchmark
IA Mixed Investment 20-60%Shares
The fund seeks to provide capital growth from a diverse range of asset classes, for example equities, fixed income, property-related investments and cash, mainly in the United Kingdom. The Trust invests mainly in UK equities and fixed income securities, e.g. corporate and government bonds. Asset allocation will be used to manage risk within the fund in order to deliver improved returns. The fund may also invest in any other asset classes (including derivatives and forward transactions, approved money-market instruments, deposits, units in collective investment schemes and property-related investments).
Holding %
Microsoft Corp 2.29 %
adidas AG 2.05 %
AstraZeneca PLC 2.02 %
Experian PLC 2.02 %
Rentokil Initial PLC 2.01 %
RELX PLC 1.98 %
Roche Holding AG Dividend Right Cert. 1.98 %
London Stock Exchange Group PLC 1.97 %
Sage Group (The) PLC 1.96 %
Segro PLC 1.96 %
Region %
United Kingdom 49.59 %
United States 30.12 %
Eurozone 10.17 %
Europe - ex Euro 10.12 %
Sector %
Healthcare 20.36 %
Technology 18.69 %
Industrials 16.62 %
Consumer Cyclical 14.50 %
Financial Services 7.42 %
Real Estate 6.93 %
Consumer Defensive 5.55 %
Basic materials 5.04 %
Name
RLUM Limited
Address
United Kingdom
UCITS
Yes
Legal Structure
Unit Trust

Managers

Mike Fox
Joined 11/26/2012

Mike is investment manager of the CIS Sustainable Leaders Trust and has been doing this job since November 2003. Mike selects, from the list of companies meeting the criteria of the Trust, the companies most likely to provide strong investment performance.

Data provided by Morningstar.

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